Stock Market & Financial Investment News

Knight Capital selling debt broker unit to Stifel FinancialKnight Capital Group (KCG), which was recently acquired by Getco, is planning to sell its credit-brokerage unit to Stifel Financial Corp. (SF), says Bloomberg citing six people with knowledge of the matter. Reference Link

Stifel Financial acquires Sterne Agee for $150M in cash, stockStifel Financial announced that it has entered into a definitive merger agreement to acquire Sterne Agee Group. The acquired businesses are expected to generate $300M-$325M in gross annual revenues and be accretive to shareholder value when fully integrated. The transaction values Sterne Agee at approximately $150M. The closing consideration consists of a combination of Stifel common stock, valued at $51.55 per share, and cash. Depending on shareholder elections, the minimum amount of Stifel stock issued at closing is 1.42M shares and the maximum amount issued is 1.62M shares. Accordingly, the cash consideration will range from approximately $77M-$66M. Stifel and Sterne Agee have agreed with the founders of the FBC Mortgage business to sell the business back to them. The merger is subject to approval by Sterne Agee shareholders and is expected to close in the late spring.The boards of directors of both companies unanimously approve the merger.